T S Grewal Solutions 2026-27 [Class 12] – Retirement of a Partner – Q 51 to 60

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Solution for Q 51 to 60 of Chapter 5 of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Retirement of a Partner from Partnership Accounts class 12. These Solutions are based on topics treatment of reserves and acumulated profits on the reirement of a partner, preparation of revaluation A/c, partners capital A/c and balance sheet, settlement of loan account of retiring partner and capital adjustment

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 51

Goodwill
Total Goodwill of the firm	112500
Y Retired
Y's share in Goodwill	33750	(3/10 X 112500)

Old Profit Sharing Ratio			X	Y	Z	Total
			5	3	2	10

New Profit sharing ratio			X	Z
			3	2

Gaining ratio = New ratio - old ratio

X's gaining ratio		3/5 -5/10	1/10
Y's Gaining Ratio		2/5 - 2/10	1/5

Final Gaining Ratio		X	Z
		1	2

X Contribute	11250	(33750 X 1/3)
Z Contribute	22500	(33750 X 2/3)

	Revaluation A/c

Particulars	Amount	Particulars	Amount
To Stock A/c	7500	By Fixed Assets	37500
		(187500 X 20/100)


To Profit on Revaluation :
To X's Capital A/c	15000
To Y's Capital A/c	9000
To Z's Capital A/c	6000


	37500		37500

Partners Capital A/c
Particulars	X	Y	Z	Particulars	X	Y	Z
				By Balance B/d	165000	84000	66000
				By Revaluation A/c-Profit	15000	9000	6000
To Y's Capital A/c	11250		22500	By X's Capital A/c-G/w		11250
				By Z's Capital A/c-G/w		22500
				By Workmen Comp Res	11250	6750	4500

To Balance C/d	180000	133500	54000
	191250	133500	76500		191250	133500	76500
				By Balance B/d	180000	133500	54000
				By Bank A/c	40500		93000


To Bank A/c		133500
To Balance c/d	220500		147000

Total	603000	400500	300000	Total	603000	400500	300000

Adjusted capital of X	180000
Adjusted capital of Z	54000
Amount to be paid to Y	133500
Total	367500
X's New Capital	220500	(367500X3/5)
Z's New Capital	147000	(367500X2/5)

Partner	New Capital	Old Capital	Difference	Capital	Cash
X	220500	180000	40500	Cr	Dr
Z	147000	54000	93000	Cr	Dr

Thus X to bring in Rs 40500 and Y to bring Rs 93000

Journal entry :

Cash A/c Dr..	133500
To X A/c		40500
To Z A/c		93000

Balance Sheet
Liabilities	Amount	Assets	Amount
Sundry Creditors	39750	Bank	15000
Employees Provident Fund	5250	Debtors	97500
		Stock	75000
		Fixed Assets	225000
X's Capital A/c	220500	(187500*1.2)
Z's Capital A/c	147000



Total	412500	Total	412500

Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	15000	To Y's Capital A/c	133500
To X's Capital A/c	40500
To Z's Capital A/c	93000	To Balance C/d	15000

Total	148500	Total	148500

Note :

Journal Entry for Goodwill :

X's Capital A/c Dr..	11250
Z's capital A/c Dr..	22500
To Y's Capital A/c		33750

Journal Entry for Capital brought in remaining partners to make their capital proportionate :

Bank A/c Dr..	133500
To X's Capital A/c		40500
To Z's Capital A/c		93000

▶ Video Solution: Coming Soon

Question 52

Adjusted capital of Sushil	103680	(As per question)
Adjusted capital of Samir	26880	(As per question)
Amount paid to Satish	87840	Retiring partner
Add - Cash Balance desired	7200
Less - Existing Cash Balance	9600
Total Capital of the new firm	216000

Partner	New Capital	Old Capital	Difference	Capital	Cash	Explanation
Sushil	129600	103680	25920	Cr	Dr	(216000*3/5)
Satish	86400	26880	59520	Cr	Dr	(216000*2/5)

Thus Sushil to bring in Rs 25920 and Samir to bring Rs 59520

Cash A/c Dr..	85440
To Sushil		25920
To Satish		59520

Satish Cap A/c Dr..	87840
To Cash A/c		87840

Cash A/c
Particulars	Amount	Particulars	Amount
To balance	9600	By Satish Cap	87840
To Sushil	25920	By Balance	7200
To Samir	59520

Total	95040	Total	95040

▶ Video Solution: Coming Soon

Question 53

Goodwill
Total Goodwill of the firm	12000
Mehak Retired
Mehak's share in Goodwill	4000	(1/3 X 12000)

Old Profit Sharing Ratio			Meghna	Mehak	Mandeep	Total
			1	1	1	3

New Profit sharing ratio			Meghna	Mandeep
			1	1

Final Gaining Ratio			Meghna	Mandeep
			1	1

Meghna Contribute	1333	(33750 X 1/3)
Mandeep Contribute	2667	(33750 X 2/3)

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Stock A/c	1400	By Creditors	900
To Furniture A/c	500
To Prov for Bad Debts	2000




		By Loss on Revaluation :
		By Meghna's Capital A/c	1000
		By Mehak's Capital A/c	1000
		By Mandeep's Capital A/c	1000


	3900		3900

Partners Capital A/c
Particulars	Meghna	Mehak	Mandeep	Particulars	Meghna	Mehak	Mandeep
				By Balance B/d	20000	14500	10000
To Revaluation A/c-Loss	1000	1000	1000
To Mehak's Capital	2000		2000	By Meghna's Cap		2000
				By Mandeep's Cap		2000
				By Gen Reserve	2500	2500	2500
				By Bank A/c	7550		17550


To Bank A/c		20000
To Balance c/d	27050		27050

Total	30050	21000	30050	Total	30050	21000	30050

Adjusted capital of Meghna			19500
Adjusted capital of Mandeep			9500
Amount to be paid to Mehak			20000
Add - Cash Balance required			25000
Less - Cash already available			19900
Total			54100

Note : Cash already available
As per Balance Sheet			27000
Less - Paid to Creditor			7100
Balance Cash Available			19900

Calculation of new capital

Meghna's New Capital			27050	(54100*1/2)
Mandeep's New Capital			27050	(54100*1/2)

Thus Meghna to bring in Rs 4000 and Mandeep to bring Rs 14000

Partner	New Capital	Old Capital	Difference
Meghna	27050	19500	7550
Mandeep	27050	9500	17550

Journal entry :

Cash A/c Dr..	25100
To Meghna A/c		7550
To Mandeep A/c		17550

Balance Sheet
Liabilities	Amount	Assets	Amount
Sundry Creditors	20000	Bank	25000
		Debtors	18000
		Stock	26600
		Furniture	4500
Meghna's Capital A/c	27050
Mandeep's Capital A/c	27050



	74100		74100

Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	27000	To Creditors A/c	7100
To Meghna's Cap	7550	To Mehak Cap	20000
To Mandeep Cap	17550	To Balance C/d	25000

Total	52100	Total	52100

▶ Video Solution: Coming Soon

Question 54

Goodwill
Total Goodwill of the firm	80000
Asha Retired
Asha's share in Goodwill	40000

Old Profit Sharing Ratio			Asha	Deepa	Lata	Total
			5	3	2	10

New Profit sharing ratio			Deepa	Lata
			3	2

Gaining ratio = New ratio - old ratio

Deepa's gaining ratio			3/5 - 3/10	3/10
Lata Gaining Ratio			2/5 - 2/10	1/5

Final Gaining Ratio			Deepa	Lata
			3	2

Deepa Contribute	24000
Lata Contribute	16000

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Fixed Assets	2500	By Creditors	2000
To Prov for Doubtful Debts	5000





		By Loss on Revaluation :
		By Asha's Capital A/c	2750
		By Deepa's Capital A/c	1650
		By Lata's Capital A/c	1100


	7500		7500

Partners Capital A/c
Particulars	Asha	Deepa	Lata	Particulars	Asha	Deepa	Lata
				By Balance B/d	40000	62000	33000
To Revaluation A/c-Loss	2750	1650	1100
To X's Capital A/c-G/w	0	24000	16000	To Y's Capital A/c-G/w	24000
				By Z's Capital A/c-G/w	16000
				By Profit & Loss A/c	42500	25500	17000



To Bank A/c	119750
To Balance c/d		61850	32900

Total	122500	87500	50000	Total	122500	87500	50000
				By Balance B/d		61850	32900
To Balance C/d		118500	79000	By Cash A/c		56650	46100
Total		118500	79000	Total		118500	79000

Total Capital of the firm :

Deepa's Capital		61850
Lata's Capital		32900
Asha's to be paid		119750
Cash Balance		15000
Cash in Hand		-32000
Total		197500

Capital's in new profit sharing ratio

Deepa's Share		118500
Lata's Share		79000

Cash Bought in/Out

Particulars	Deepa	Lata
Old Capital	61850	32900
New Capital	118500	79000
Difference	-56650	-46100
	Cash In	Cash In

Note : Balance Sheet is not asked in the question. It is given here only for information

Balance Sheet
Liabilities	Amount	Assets		Amount
Creditors	40000	Cash at Bank		15000
Employees Provident Fund	10000	Sundry Debtors	100000
		Less - Prov	5000	95000
		Stock		80000
Deepa's Capital A/c	118500	Fixed Assets		57500
Lata's Capital A/c	79000



	247500			247500

Note :

Creditors of Rs 10000 has been settled so the same impact to be given in cash A/c

While deciding the final cash balance of RS 15000, this impact of payment of Rs 8000 also to be considered

Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	40000	By Sundry Creditors	8000
To Deepa's Capital A/c	56650	By Asha's Capital A/c	119750
To Lata's Capital A/c	46100	By Balance C/d	15000

Total	142750	Total	142750

▶ Video Solution: Coming Soon

Question 55

Goodwill
Total Goodwill of the firm	22000
Pawan Retired
Pawan's share in Goodwill	7333	(22000*2/6)

Old Profit Sharing Ratio			Suraj	Pawan	Kamal	Total
			3	2	1	6

New Profit sharing ratio			Suraj	Kamal
			3	1

Gaining ratio = New ratio - old ratio

Suraj's gaining ratio			3/4 - 3/6	1/4
Kamal's Gaining Ratio			1/4 - 1/6	1/12

Final Gaining Ratio			Suraj	Kamal
			3	1

Suraj Contribute	5500	(7333 X 3/4)
Kamal Contribute	1833	(7333 X 1/4)

Suraj Capital A/c Dr..	5500	(7333*3/4)	(Gaining partner)
Kamal Capital A/c Dr..	1833	(7333*1/4)	(Gaining partner)
To Pawan Capital A/c		7333	(Sacrificing partner)

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Prov for Doubtful Debts	1000	By Creditors A/c	6000
To Stock A/c	1800
To Furniture A/c	1500
O/s Claim for Damages	1100



To Profit on Revaluation :
To Suraj's Capital A/c	300
To Pawan's Capital A/c	200
To Kamal's Capital A/c	100


	6000		6000

Partners Capital A/c
Particulars	Suraj	Pawan	Kamal	Particulars	Suraj	Pawan	Kamal
				By Balance B/d	40000	40000	30000
				By Revaluation A/c-Profit	300	200	100
To Pawan's Capital A/c-G/w	5500		1833	By Suraj's Capital A/c-G/w		5500
To Goodwill	5000	3333	1667	By Kamal's Capital A/c-G/w		1833
				By General Reserve	6000	4000	2000



To Cash A/c		48200
To Balance c/d	35800		28600

Total	46300	51533	32100	Total	46300	51533	32100
To Cash A/c			2450	By Balance B/d	35800		28600
To Balance C/d	78450		26150	By Cash A/c	42650
Total	78450		28600	Total	78450		28600

Total Capital of the firm :

Suraj's Capital			35800
Kamal's Capital			28600
Amt to be paid to Pawan			48200
Cash in Hand			10000
Less - Cash Balance existing			-18000
Total Capital of new firm			104600

Capital's in new profit sharing ratio

Suraj's Share		78450	(104600x3/4)
Kamal's Share		26150	(104600x1/4)

Cash Bought in/Out

Particulars	Suraj	Kamal
Old Capital	35800	28600
New Capital	78450	26150
Difference	42650	2450
	Cash In	Cash Out
Capital	Cr	Dr
Cash	Dr	Cr

Balance Sheet
Liabilities	Amount	Assets		Amount
Creditors	40000	Cash in Hand		10000
		Debtors	25000
O/s Claim for Damages	1100	Less - Prov	4000	21000
		Stock		16200
Suraj's Capital A/c	78450	Furniture		28500
Kamal's Capital A/c	26150	Machinery		70000


Total	145700	Total		145700

Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	18000	By Kamal's Capital A/c	2450
To Suraj's Capital A/c	42650	By Pawan's Capital A/c	48200
		By Balance C/d	10000

Total	60650	Total	60650

▶ Video Solution: Coming Soon

Question 56

Profit for the year ended 31-Mar-2025	360000
Date of retirement of Bhanu	30-Sep-25
Estimated profit from Apr 2025 to Sep 2025	180000	(360000X 6/12)
(for 6 months)
Bhanu's share in profits	1/3
Bhanu's share upto the date of retirement	60000

Journal entry :

Profit and Loss Suspense A/c Dr..				60000
To Bhanu's Capital A/c					60000

Calculation of Gaining Ratio

New Profit sharing ratio			Amit	Charu	Total
			3	2	5

Old profit sharing ratio			Amit	Bhanu	Charu	Total
			1	1	1	3

Gaining ratio	Amit	Charu	Total
	4/15	1/15		or
	4	1	5

Amit Capital A/c Dr..		48000
Charu Capital A/c Dr..		12000
	To Bhanu's Capital A/c		60000

▶ Video Solution: Coming Soon

Question 57

Loss for the year ended 31-Mar-2025	180000
Date of retirement of Bhuvi	30-Sep-25
Estimated loss from Apr 2025 to Sep 2025	90000	(180000 X 6/12)
(for 6 months)
Bhuvi's share in profits	1/3
Bhuvi's share upto the date of retirement	30000

Journal entry :

Bhuvi's Capital A/c Dr…				30000
To Profit and Loss Suspense A/c					30000

Calculation of Gaining Ratio

New Profit sharing ratio			Amar	Charan	Total
			3	2	5

Old profit sharing ratio			Amar	Bhuvi	Charan	Total
			1	1	1	3

Gaining ratio	Amar	Charan	Total
	4/15	1/15
	4	1	5

Bhuvi Capital A/c Dr..	30000
To Amar's Capital A/c		24000
To Charan's Capital A/c		6000

▶ Video Solution: Coming Soon

Question 58 (a)

Profit and Loss Appropriation A/c Dr..	720000
To Yogesh Capital A/c		288000	(2 : 2 : 1)
To Naresh Capital A/c		288000
To Pavesh Capital A/c		144000

▶ Video Solution: Coming Soon

Question 58 (b)

Yogesh Capital A/c Dr..	144000		(2 : 2 : 1)
Naresh Capital A/c Dr..	144000
Pavesh Capital A/c Dr..	72000
To Profit and Loss Appropriation A/c		360000

▶ Video Solution: Coming Soon

Question 59

Calculation of average profits for the last 3 years
Year 1					45000
Year 2					30000
Year 3					24000
Total Profits					99000
Average profits for 12 months					33000
Average profits for 6 months					16500
Chetan share In profits					1/3
Chetan share from Apr 2025 to Sep 2025					5500

Calculation of Share of Goodwill

Calculation of amount payable to Chetan on retirement

Balance in Capital A/c	160000
Add - Balance in Current A/c	-5000	(Part of Current A/c)
Add - Share of profits till retirement	5500	(Part of Current A/c)
Add - Share of Goodwill	16500	(Part of Current A/c)
Total Amount payable	177000

▶ Video Solution: Coming Soon

Question 60

Revaluation A/c
Particulars			Amount	Particulars		Amount
To Investments A/c			25000	By Building A/c		200000
				By Stock A/c		50000
To Profit on Revaluation :
Amit		90000
Bunty		90000
Charan		45000	225000

	Total		250000		Total	250000

Partners Capital A/c
Particulars	Amit	Bunty	Charan	Particulars	Amit	Bunty	Charan
				By Balance B/d	600000	600000	400000

				By Revaluation A/c	90000	90000	45000
To Charan Capital A/c	53400	53400		By General Reserve	120000	120000	60000
				By Emp Comp Res	40000	40000	20000
				By Amit Capital A/c			53400
				By Bunty Capital A/c			53400
				By Profit and Loss Susp			15000
To Charan Loan A/c			646800
To Balance c/d	796600	796600

Total	850000	850000	646800	Total	850000	850000	646800

Valuation of Goodwill :

2021-2022	200000
2022-2023	235000
2023-2024	300000
2024-2025	275000
2025-2026	325000
Total Profits	1335000

Average Profits	267000	(1335000/5)
No of years purchase	2
Goodwill of the firm	534000	(267000 X 2)

Charan share in profits	1/5
Charan share in Goodwill	106800	(534000 X 1/5)

Amit will contribute (1/2)	53400
Bunty will contribute (1/2)	53400

Calculation of Charan's share of profits :

2023-2024	300000
2024-2025	275000
2025-2026	325000
Total Profits for 3 years	900000

Average profits for 3 years	300000	(900000/3)
Estimated profits for 3 months	75000	(300000 X 3/12)
Charan share in profits	1/5
Charan share of profits till	15000
date of retirement

Balance Sheet
Liabilities	Amount	Assets	Amount
Creditors	100000	Building	1200000
		Investments	100000
Charan Loan A/c	646800	Stock	300000
Amit Capital A/c	796600	Debtors	400000
Bunty Capital A/c	796600	Cash at Bank	200000
		Cash in Hand	125000
		Profit and Loss Suspense A/c	15000


	2340000		2340000

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-60 |

T S Grewal Solutions – Retirement of a Partner– All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

Average profits for last 3 years

No of years purchase

Goodwill of the firm

Chetan share In profits

Chetan share in Goodwill